Five simple tips to become a successful trader

Five simple tips to become a successful trader

The novice traders are always looking for Holy Grail to become a Forex millionaire. After a few years, they realize that no one in this world can win all trades. Losing is just a part of this profession. However, if you can learn to embrace managed loss, you can easily make a huge profit from this market. The successful Aussie traders are always making a consistent profit just by using the simple rule of money management. They never take any risk which they can afford to lose. You have to trade this market within your comfort zone so that a few losing trades don’t break your confidence level. There are many things that you need to understand to become a successful trader. Today we will give you five amazing tips which will change your trading career.

Maintain a trading journal

All the professional traders in the Australian trading community have their trading journal. It allows them to trade the market with solid discipline. You might say that journal is not needed as you can remember your trading result just by seeing the logs of your trading platform. But during the weekend you can’t waste any time in recollecting data from your trading logs. That’s why you need a journal so that you can assess your trading performance in every weekend and bring positive changes to your existing system.

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Focus on the daily time frame

Higher time frame trading is extremely profitable even though is very boring. But who cares when you can make tons of money with a boring profession. Try to do the market analysis in the daily time frame so that you can avoid the false trading signals. Use the simple trend line tools to trade the long-term market trend. Never trade the market against trend as it will dramatically increase your risk exposure.

Use the price action trading strategy

When you are trading CFD, you have can use tons of different trading system. But using a complex trading system will never help you to become a successful trader. You have to keep things simple so that you can easily find profitable trades in favor of the market trend. Learn the use of Japanese candlestick pattern so that you can execute a precise trade with tight stop loss. As a retail trader, you should never trade the market for high impact news. Wait for the market volatility to settle down and trade with clear price action signal. Though the system is extremely profitable yet you should never risk more than 1% of your account capital.

Trade the chart pattern

Chart pattern trading strategy is one of the best ways to catch the large market movement. Try to learn the major chart patterns in the market as it will help you to understand the complex nature of this industry. As a new trader, you need to focus on the continuation pattern. Over the period of time, you will gain experience and everything will become easy for you. While using the chart pattern, use the price action trading strategy to limit your risk exposure. Trade the market on minor retracement and focus on the fundamental factors to maximize your profit.

Use manual trading system

Some people often say bots and EAs will make them rich. But after a few days, making money in Forex trading industry is not all possible. Indeed its true but for those who use automatic trading software and bots. You have to learn manual trading strategy to become a successful trader. Open a trading account with the reputed broker so that you can get the best trading environment. Stop trading the market with a low class broker to cut your trading cost. If you can make a profit from this market, money is not going stop you from enjoying the best features of this market.

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